28th Oct 2020 17:45
(Alliance News) - Biffa PLC on Wednesday backed its chair despite concerns from shareholders who rejected his re-election at the waste management firm's annual general meeting.
Biffa, which engaged with some shareholders following a vote in July when only 67% backed Ken Lever's re-election, said its chair can fulfil his duties, despite positions being held elsewhere.
"The board is aware of the expanded focus on 'overboarding' of directors in recent years and that a number of institutional investors and proxy advisers have developed specific guidelines with regard to this. It is understood that a number of shareholders voted against the resolution because of the chairman's appointments not meeting the numerical element of these guidelines rather than a concern about the chairman effectively fulfilling his duties," Biffa said.
"As previously stated, the board is confident that the chairman discharges effectively his role as chairman notwithstanding his other board commitments."
Three other resolutions also drew the ire of a large number of investors. Votes on the authority to allot shares, on (pre-emption rights (general authority) and (pre-emption rights (specific authority) received support of just 67%, 65% and 64% of shareholders, respecitvely.
"The board understands that the use of a cashbox placing on a non pre-emptive basis to raise equity capital earlier this year was the main factor influencing certain shareholders to vote against these resolutions. It is recognised that the principles of pre-emption are important to protect shareholder rights. However, the cashbox placing structure was chosen to minimise cost, time to completion and management distraction during the start of the coronavirus pandemic in the UK, which was an unprecedented time for the group," Biffa said.
"The board, having been advised, determined that it was in the best interests of the company and its shareholders to raise equity in this way. The company consulted a number of its shareholders prior to the placing and respected the principles of pre-emption as far as possible through the allocation process. The board was pleased by the strong support it received from existing shareholders and new investors."
Biffa shares closed 3.3% lower at 204.50 pence each in London on Wednesday.
By Eric Cunha; [email protected]
Copyright 2020 Alliance News Limited. All Rights Reserved.
Related Shares:
BIFF.L